Dynex Capital, Inc. Announces 2013 Dividend Tax Information

GLEN ALLEN, Va.--(BUSINESS WIRE)--Dynex Capital, Inc. (NYSE: DX) today announced tax information with
respect to its 2013 Common Stock, Series A Preferred Stock and Series B
Preferred Stock dividends.

Dividend Tax Information

We are providing the information below to assist you in your tax
reporting requirements relating to the distribution as dividends of
taxable income by Dynex Capital, Inc. (“Dynex” or the “Company”). As
detailed below, dividends paid by Dynex on its Common Stock, Series A
and Series B Preferred Stock were in part ordinary taxable income and in
part capital gains. No portion of the dividends paid in 2013 were
attributable to a return of capital. The distributions of ordinary
taxable income are not eligible for the tax rate reductions enacted for
qualified dividend income under the Jobs and Growth Tax Relief
Reconciliation Act of 2003 and are accordingly being reported as
non-qualifying dividends.

Shareholders should review the 2013 tax statements and/or Form 1099 that
they receive from their brokerage firms in order to ensure that the
dividend distribution information reported on such statements conforms
to the information set forth in this press release.

The table below provides a summary of the tax information relating to
the quarterly dividend distributions of the Company for the 2013 tax
year:

Dynex Capital, Inc. Common Stock (CUSIP 26817Q506)

Dividend

Record

Date

Payment

Date

Dividends

per Share

Ordinary

Income

Capital Gain

Distribution

Return of

Capital

12/31/2013

01/31/2014

$0.27

$0.2567332

$0.0132668

$0.00

10/07/2013

10/31/2013

$0.27

$0.2567332

$0.0132668

$0.00

06/28/2013

07/31/2013

$0.29

$0.2757505

$0.0142495

$0.00

04/01/2013

04/30/2013

$0.29

$0.2757505

$0.0142495

$0.00

$1.12

$1.0649674

$0.0550326

$0.00

Dynex Capital, Inc. Series A Preferred Stock (CUSIP 26817Q704)

Dividend

Record

Date

Payment

Date

Dividends

per Share

Ordinary

Income

Capital Gain

Distribution

Return of

Capital

10/07/2013

10/15/2013

$0.53125000

$0.5051464

$0.0261036

$0.00

07/01/2013

07/15/2013

$0.53125000

$0.5051464

$0.0261036

$0.00

04/01/2013

04/15/2013

$0.53125000

$0.5051464

$0.0261036

$0.00

01/01/2013

01/15/2013

$0.53125000

$0.5051464

$0.0261036

$0.00

$2.12500000

$2.0205856

$0.1044144

$0.00

Dynex Capital, Inc. Series B Preferred Stock (CUSIP 26817Q803)

Dividend

Record

Date

Payment

Date

Dividends

per Share

Ordinary

Income

Capital Gain

Distribution

Return of

Capital

10/07/2013

10/15/2013

$0.47656250

$0.4531460

$0.0234165

$0.00

07/01/2013

07/15/2013

$0.46068000

$0.4380439

$0.0226361

$0.00

$0.93724250

$0.8911899

$0.0460526

$0.00

Dividend Reinvestment

Dividends may be reinvested through the Dynex Capital, Inc. Dividend
Reinvestment Plan. Plan information may be obtained from the Company’s
transfer agent, Computershare, at 866-280-4097.

Tax Disclaimer

The information above should not be construed as tax advice and is not a
substitute for careful tax planning and analysis. You should consult
your own tax advisor regarding the specific federal, state, local,
foreign and other tax consequences to you regarding your ownership of
shares of the Company’s Common and Preferred stock.

Dynex Capital, Inc. is an internally managed mortgage real estate
investment trust, or mortgage REIT, which invests in mortgage assets on
a leveraged basis. The Company invests in Agency and non-Agency RMBS and
CMBS. The Company also has investments in securitized single-family
residential and commercial mortgage loans originated or purchased by the
Company during the 1990s. Additional information about Dynex Capital,
Inc. is available at www.dynexcapital.com.